malvernmugadzikwa
Business Reporter
PADENGA HOLDINGS LIMITED says its gold sales rose by 22 percent to 2 025 kilogrammes in the nine months ending September 30, 2024, with the volume growth driven by increases in mill feed grades and recoveries.
The Victoria Falls Stock Exchange-listed diversified group, with interests in agriculture and mining, is undergoing strategic transformation. Its mining operations are emerging as the primary growth engine.
In its trading update for the period under review, Padenga, whose mining division is Dallaglio Investments, said during the corresponding period last year, gold sales stood at 1 665kg.
“Dallaglio’s gold sales for the nine months ended September 30, 2024 increased by 22 percent to 2 025kg, from 1 665kg recorded in the prior period, with the volume growth underpinned by increases in mill feed grades and recoveries.
“Average mill feed grades increased by 6 percent to 1,51 grammes per tonne from 1,42g/t in the prior period mainly driven by Eureka Mine, which is in line with the expected evolution of the open pit resource,” it said.
In the period under review, Padenga achieved milled tonnage improvement as a result of the addition of a new mill at Pickstone Peerless Mine in Kadoma, coupled with optimised plant throughput at Eureka Mine.
The average plant recoveries rose by 2 percentage points from 89 percent to 91 percent for the current period, enhanced by the transition to processing more underground ore at Pickstone Mine.
“Open pit mining at Pickstone Peerless Mine will ease before the end of the current year and operation will focus on underground mining going forward.”
Dallaglio’s performance to date has been spurred by improved gold output, supported by favourable prices of the yellow metal, with the outlook pointing to the current firm prices into next year.
At present, gold on the international market was trading at above US$2 500 per ounce (oz) and going forward into next year, the precious metal is seen trading at around US$2 900 per oz.
Padenga said it is focused on opportunities to successfully execute the ongoing Pickstone Mine underground development ahead of plan, to reduce the cost per oz of gold and capitalise on the metal’s high prices.
“The pre-leach thickener under construction at Eureka is progressing on schedule and within budget, with expected commissioning in the final quarter of the current year.
“Management remains focused on initiatives to boost ore grade, reduce operating costs and increase recoveries,” said the diversified group.
“Accordingly, delivering the remaining scope of development on Pickstone Peerless Mine underground project on schedule is a key focus area.”
Eureka, which is the group’s mining flagship, is presently operating well and consistently meeting its production targets, and making a steady contribution to Padenga’s overall gold production volumes.
“This, coupled with the elevated gold prices, means the business is set to surpass its operational and financial targets for the year,” it
said.
Gold is Zimbabwe’s largest single export. A record high of 35,3 tonnes were delivered to Fidelity Gold Refinery, the country’s sole buyer of the yellow metal, in 2022.
Last year, the country produced 30,1 tonnes of gold, and a target of 35 tonnes is expected to be achieved by the end of the year.
Official figures from FGR indicate that Zimbabwe produced 28,2 tonnes in the first 10 months of this year compared to 24,6 tonnes in the corresponding period in 2023.
Online Reporter